Corporations Code section 511

Notwithstanding the provisions of this chapter, a negotiable instrument issued by a corporation for the purchase or redemption of shares shall be enforceable by a holder in due course (Section 3302 of the Commercial Code) without notice that it was issued for that purpose or by a person who acquired the instrument through such a holder.

Source: Section 511, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=511.­ (updated Jan. 1, 1978; accessed Jun. 30, 2025).

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Verified:
Jun. 30, 2025

§ 511's source at ca​.gov